The evolving world of power Opportunities and challenges

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to end-use in our homes. While increasing demand for power is a reality. greenhouse gas emissions must be dramatically reduced. is due in significant part to man’s activities. Approximately 80 percent of energy is lost in the chain from primary harvesting of resources such as oil and gas. To achieve this goal. World Energy Outlook. a combination of energy efficiency measures and renewable power generation could deliver 75 percent of the required emissions reduction over the next two decades. Improving the efficiency of this energy chain remains the most cost-effective way of lowering consumption and emissions.000 terawatt hours a year. which began during the industrial revolution. and demand for electricity is rising even faster. There is mounting evidence that the rise in global temperatures. Unless changes are made. It is now widely accepted that global temperatures must be limited to a maximum of 2°C above preindustrial levels if the effects of climate change are to be held to an acceptable economic. social and environmental cost. 1 International Energy Agency. offices and factories. The evolving world of power 3 .1 That’s more than twice the amount used in 2000. climate change is also a serious cause for concern. According to the International Energy Agency (IEA). global electricity consumption will be close to 30. by 2030. Meeting this kind of demand would mean building a one gigawatt power plant and its associated grid infrastructure every week for the next 20 years. Concern for the environment is now high on the global agenda and governments around the world are mobilizing resources to fight climate change. 2009.Balancing the need for power with minimum environmental impact Global demand for energy is rising fast.

9 +76% Energy-related CO 2 emissions 45 Gigatons (Gt) 40 35 30 25 20 15 10 5 0 2007 2015 2030 28. These sources will reduce our long-term dependence on fossil fuels.4 20. and more than 40 percent of global carbon dioxide emissions are produced by fossil-fueled power generation. Energy losses can be reduced by 20-30% using ABB solutions Primary energy Transport Generation T&D Industry Commercial Residential Standard losses Reduced losses Available energy Improved well efficiency Efficient vessels More efficient fuel combustion Low line losses. managing distribution networks more intelligently and using electricity more productively.5 40. based on existing technologies.World electricity demand Terrawatt hours (TWh) 40 35 30 25 20 15 10 5 0 2007 2015 2030 16. Industry consumes over 40 percent of the world’s electricity. substations Process control Energy management Smart buildings Energy savings are available across all of ABB’s market segments 4 The evolving world of power . the power sector could play a major role in efforts to reduce greenhouse gas emissions by facilitating improvements in energy efficiency and integrating renewables. can reduce losses at each step in the energy value chain by 20-30 percent.8 34. Clearly. based on existing technologies. If we can generate power more efficiently.2 +40% ABB solutions. World Energy Outlook 2009. lowering global emissions of greenhouse gases and other pollutants. substation efficiency Improved productivity Building management Home automation 20-30% improvement Process control Marine Power plant automation Grid systems. ABB solutions. can reduce losses at each step in the energy value chain by 20-30 percent. Major reductions in carbon emissions can come from the development of renewable energy sources such as hydro.4 28. wind and solar. we can reduce environmental impact and costs. The same benefits can come from reducing transmission losses. and make better use of renewable energy sources. Source: International Energy Agency.

The power sector will play a major role in efforts to reduce greenhouse gas emissions by integrating renewables Opportunities and challenges 5 .

will need to feed into electricity grids. electric vehicles and hydrogen fuel cells. which are often located far from centers of demand and may be subject to the vagaries of the weather.000 2. The grids must be able to manage their unpredictable and intermittent nature.000 Nuclear 14. Source: International Energy Agency.000 Gas Coal 10.000 Hydro 18.While the cost of renewable energy is generally higher than that of conventional alternatives. though not insurmountable challenges and the grid will need to evolve. the increase of renewables will bring a set of new. and accommodate an increasing share of small-scale and distributed generation sources at the same time.000 8.000 Oil 0 Tidal Geothermal Biomass.000 16.000 4. But renewable power sources. which are close to centers of demand. economies of scale and advances in technology are bringing prices down and making the environmental benefits ever more attractive. 6 The evolving world of power .000 12. Since electricity networks have evolved over the decades to transport electricity from predictable and controllable generation sources. the result is that CO2 emissions in 2050 are contained at half the level of 2005. Waste Solar CSP Solar PV Renewables (IEA Blue Map Scenario)1 Other Wind Hydro 1990 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 1 Blue Map Scenario is a combination of high efficiency. biofuels.000 6. Renewable energy sources are expected to make a major contribution Global electricity production (TWh/y) 20.

power systems need to become more effective and efficient. but in the future. which include faster fault detection and resolution. we remain committed to the development and deployment of technologies to help our customers to be more competitive by increasing efficiency. Across the world. The power system of the future will be more flexible and interconnected. Stability will be enhanced by enabling generators to share power during periods of low demand. without interruption by external influences. By their nature. which strengthens the link between software systems used to control the network and the physical infrastructure of the grid. through increased automation and greater deployment of energy efficiency technologies to ensure we make the best possible use of our infrastructure and our resources. The advent of electric vehicles will also have an impact on the development of the future grid – key aspects that need to be addressed are the charging and energy storage infrastructure. efficiency and security of electricity supplies. grid expansion and renovation will be required to ensure the reliability. This convergence will deliver the sophisticated automation systems needed to support the many growing complexities. At ABB. Energy and renewables could deliver bulk of CO2 savings 45 40 57% 35 30 25 20 2005 2010 2015 2020 2025 2030 20% 10% 10% Energy efficiency Renewables Biofuels (3%) Nuclear CCS* *carbon capture and storage Reference scenario 450 policy scenario1 1 Energy-related CO2 emissions reduced by 50%. But the introduction of information and communications technologies to our grids has increased the need for cyber security. World Energy Outlook 2009.Annual emission of CO2 in gigatonnes In many regions. helping to meet shortfalls in neighboring systems. the utility management and control systems of the past were inherently difficult to compromise and a “security by obscurity” approach prevailed. In the past. Another key development in the management of the evolving power network is the convergence of information (IT) and operational (OT) technologies. while maintaining the required levels of grid reliability in the coming decades. 2050 compared to 2007. which will accommodate remote renewables and facilitate efficient energy trading. To ensure a balance between supply and demand. utilities and consumers. The evolving power system will have more long-distance transmission links and more grid interconnections. There will also be more focus on ensuring power quality and reliability to avoid power fluctuations and failures. leading to the evolution of a stronger and smarter grid. and elsewhere. Source: International Energy Agency. while lowering environmental impact. to address the challenges and opportunities of balancing our growing need for power with environmental concerns. and billing systems. electricity supplies simply followed demand patterns. whole new systems will be needed to serve consumers as living standards rise. more automated and intelligent. Alongside the benefits these technologies bring. The power system of the future will be more flexible and interconnected. Opportunities and challenges 7 . as more renewable power is incorporated into the system. enhancing capacity and improving reliability. balancing our growing need for power with environmental concerns. demand management will require the active involvement of power generators. additional control systems are required to ensure that the grid’s systems will function correctly. consumption will also need to be controlled.

HVDC Light. regardless of the energy source. underground and even underwater. ABB offers technologies for complete electrical and automation solutions as well as controls and instrumentation products for power generation plants of all kinds. With more than 125 years of experience and a vast installed base. efficient. reliable. including technologies like HVDC. Power transmission ABB is a pioneer and market leader in technologies for efficient and reliable transmission of power over long distances with minimal losses. FACTS and cable systems. Substations Transmission and distribution substations use a range of high. protection equipment. switchgear. intelligent Energizing and controlling power plants Power plant operators aim to run their installations at the highest possible level of efficiency.ABB techologies enable the flow and control be more flexible. Our ultrahigh and high-voltage solutions up to 1000 kV. and transformers. circuit breakers. help transport power and connect transmission grids over land. 8 The evolving world of power . Specialist automation systems protect and optimize the flow of power within a substation.and medium-voltage products that ensure reliability and efficiency in the power system. These include surge arrestors.

from consulting. store and analyze data from thousands of points in a network. as well as industry and rail networks. transmission and distribution systems. Systems like network solutions. ABB’s offering encompasses the entire range of services.of electricity for power networks to and environmentally friendly Managing the network Network management software products and systems collect. instrument transformers. capacitors. Services With unparalleled domain expertise. repair and refurbishment to complete maintenance and asset management solutions. switchgear. power.enhancing reliability. Opportunities and challenges 9 title 9 ABB Group profile | chapter . improving energy efficiency and lowering environmental impact. distribution and traction transformers as well as a complete range of medium voltage products . ABB’s global installed base coupled with its vast portfolio facilitates life cycle support across the power value chain. Products ABB’s product offering across voltage levels includes circuit breakers. SCADA (supervisory control and data acquisition) and utility communications enable real-time monitoring and control of power generation.

maximize efficiency and improve grid reliability. automation. improve reliability. HVDC is also widely used for grid interconnections. For these reasons. 10 The evolving world of power . which can deliver electricity from remote generation sources to consumption centers. ABB pioneered HVDC (high-voltage direct current) technology more than 50 years ago and has supplied more than half of the world’s installed HVDC capacity. instrumentation and control systems we offer products.ABB’s offering across the power value chain Energizing and controlling power plants More than 50 percent of the total investment in power infrastructure goes to the generation sector as we continue to add capacity. With an extensive offering portfolio that includes electrical balance of plant. it is the technology of choice for longdistance transmission projects. especially in the emerging economies. It has lower losses and a smaller footprint than traditional high-voltage alternating current (HVAC) transmission systems. HVDC technology is designed for high-efficiency power transmission via overhead transmission lines and underground or submarine cables. systems and service solutions that help optimize performance. enhance efficiency and minimize environmental impact through the entire lifecycle of the plant. Although power generation around the world will continue to depend heavily on coal and other fossil fuels for the foreseeable future. ABB is a leading provider of integrated power and automation solutions for all types of power generation plants. which help customers to reduce transmission losses. the renewables sector is growing and will play an important role in the global transition to a low-carbon economy. and is able to stabilize intermittent power supplies that might otherwise disrupt the grid. Power transmission ABB has a comprehensive offering of alternating and direct current transmission systems.

while ensuring robust performance and minimal electrical losses. reducing the time. reducing waste. The portfolio includes high-performance XLPE (cross-linked polyethylene) insulated cables for high efficiency transmission systems at voltages up to 500 kV. oil-free cables and compact converter stations. The environmental benefits of HVDC Light ®. is ideal for linking offshore installations. It is used to overcome limitations of distance and grid incompatibility. ABB has delivered more than 7. FACTS solutions can alleviate the need for capital investment.to high-voltage AC and DC systems. cables and complete converter stations. improving services and revenues. ABB has a unique in-house manufacturing capability that includes semiconductors. accessories and services for a range of applications from medium. to mainland grids.HVDC Light®. ABB also offers a comprehensive range of land and submarine cables. By improving efficiency. FACTS technologies also boost transmission efficiency. ABB is a global leader in FACTS technologies and has more than 700 installations in operation or under construction around the world. When it comes to transmission grid solutions. include neutral electromagnetic fields.000 km of XLPE cables for voltages in excess of 100 kV for projects around the world. relieve bottlenecks and can be used for the safe integration of unpredictable power sources such as wind and solar into the grid. By enhancing the capacity of existing transmission infrastructure. cost and environmental impact associated with the construction of new generating facilities and transmission lines. a system based on ABB’s classic HVDC technology.by as much as 50 percent . ABB Group profile | chapter title 11 Opportunities and challenges . FACTS technologies help to deliver more power to consumers.while maintaining or improving the system’s reliability. such as wind farms or oil and gas platforms. FACTS (flexible alternating current systems) technologies improve power quality and can significantly increase the capacity of alternating current transmission lines .

as well as enterprisewide data integration for efficient power system management. reliability and safety of ABB’s substations. up to 1. distribution and utilization of electricity – enabling efficiency. from deserts and mountains to offshore rigs and crowded city centers. They perform the vital function of monitoring and controlling power flows. With the recent addition of Ventyx. Managing the network ABB’s network management and utility communications solutions monitor. intermittent sources of renewable energy. control. realtime pricing and load-management data. systems and service solutions facilitate the generation. district heating. gas. distribution networks. The standard also facilitates multivendor integration and substation extensions.and hybrid insulated substations. transmission.Substations Substations are key installations in the power grid that facilitate the efficient transmission and distribution of electricity. This provides real-time control and monitoring functions and helps to maximize the availability. and energy trading markets. operate and protect power systems. feeding power from generating stations into the grid and providing the link between transmission and distribution networks as well as end consumers. Network management systems are a key smart-grid component enabling highly automated power systems to incorporate and manage centralized and distributed power generation. ABB has successfully delivered projects in all kinds of environments. As the world’s leading supplier of air-. ABB’s offering is compliant with IEC 61850.a valuable combination for the development of smart grids. the open communication standard. ABB’s offering includes control and protection systems for power generation. gas and water). as well as software solutions for central electricity markets and mixed utilities (electricity. 12 The evolving world of power . reliability and power quality. transmission and distribution. ABB has a unique portfolio comprising an end-to-end software offering in addition to a comprehensive range of operational technologies . They ensure the reliability of electricity supplies and enable real-time management of power plants. transmission grids. which provides a common framework for substation automation and facilitates interoperability across devices and systems. efficiency. ABB products.100 kV. ABB’s substation offering covers a range of voltage levels.

to extend the life of existing equipment and improve performance.and dead-tank circuit breakers. These products enhance the reliability.and hybrid-insulated switchgear solutions. The products serve new project installations and retrofit or upgrades. all supported by a global service network. modular systems and equipment for distribution automation. Opportunities and challenges 13 . from offshore and industrial facilities to urban and rural locations. This includes air-. instrument transformers.Products ABB offers a spectrum of high-voltage products at ratings up to 1. ABB’s medium-voltage technologies play an important role in maintaining stability. ABB’s medium voltage portfolio includes switchgear. The products are built to withstand the rigors of the most demanding environments. efficiency and quality of power supplies with minimum environmental impact and enable the safe transmission of power at high voltage levels. gas. live. Products are also available for OEMs (original equipment manufacturers) to incorporate into their own installations.100 kV. ABB high-voltage products are supported with a full-range service portfolio. power capacitors and surge arresters. power quality and efficiency in the distribution network.

With 30 service centers. As the world’s leading manufacturer of transformers. from power plants. ABB is also the world’s leading transformer service provider. reliability and durability. It addition to setting new records in terms of power ratings. ABB’s transformer technology achievements include the world’s first 800 kV DC bushings. and ultra low-sound transformers for noise-sensitive environments.000 meters).Transformers are an integral component of the power value chain. ABB produces over 2. performance optimization and routine maintenance. ABB has also developed high-efficiency distribution transformers that can reduce energy losses up to 70 percent. installation and commissioning.000 power transformers and 500. 14 The evolving world of power . Services ABB’s service portfolio includes design and consulting. and a range of environmentally friendly products including high-efficiency amorphous core transformers and transformers using biodegradable vegetable oil. ABB pioneered the development of commercial transformers in the late 19th century and has continuously improved its transformer technology in terms of efficiency. as well as refurbishments and upgrades. to end-user applications. the world’s most efficient subsea transformer (which can operate at depths of up to 3.000 distribution transformers every year. through transmission and distribution systems and substations.

With a 125 year heritage of technology and innovation and a presence in over 100 countries. through sustainable business practices and environmentally sensitive products.The evolving world of power Delivering power and productivity for a better world ABB constantly strives to enhance efficiency by optimizing power generation and providing reliable power transmission and distribution. Monitoring systems are becoming more sophisticated and able to handle complex functions. efficiency. ABB technologies are playing a central role in the optimization of electricity generation and the evolution of more flexible. less predictable and less controllable elements that include a larger portion of low-carbon energy sources. Opportunities and challenges 15 . transmission and distribution through to end use. we have corporate research centers in different parts of the world. mainly carbon-based and controllable power generation to more distributed. ABB products. In order to maintain our industry-focused expertise and understanding of customer needs. delivering power more efficiently and with lower environmental impact. delivering power and productivity for a better world. ABB continues to shape the grid of the future. The use of information technology to improve the intelligence of power systems is increasing. delivering power and productivity for a better world. This transition brings challenges in terms of renewable integration. to software solutions for energy forecasting. ABB offers a vast portfolio of power and automation technologies and remains committed to helping customers to do more with less. Our engineers and developers are working to maintain a constant flow of ideas and improvements that will enable us to meet the needs of today and tomorrow. Conversely. We are moving from a centralized. India and China. planning and enabling demand management to preparing the grid for electric vehicles. more intelligence and the ability to manage power networks effectively. in Europe. ABB continues to shape the grid of the future. ABB technologies are addressing the challenge of balancing rising demand for power with increasing concern for the environment. the ability to manage demand patterns and balance supply with demand is improving as the power system adapts to a multi-directional energy and communication flow. and power quality. reliability. This evolution will bring flexibility. The power sector is currently witnessing the most significant changes in recent history. From harnessing and integrating renewables. reliability. the United States. With a 125 year heritage of technology and innovation and a presence in over 100 countries. systems and service solutions cover the entire value chain from generation. reliable and smarter grids.

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